💥💥 SBA COVID-19 Stimulus $10,000 Grant EIDL #Fail 💥💥
Before I get to that: first, a quick disclaimer. While I did concentrate heavily on this in school, I have not taken the bar, and I am most definitely not a lawyer. This is not legal advice and is for entertainment purposes only. Think of this as a friendly conversation between friends, we are friends, right?
Also, this was recorded on Tuesday, April 7th and is based on the most current information I could find. This is a fluid subject, and, of course, may have changed by the time you watch this video.
As many of you know the US Congress passed H.R.748 the “Coronavirus Aid, Relief, and Economic Security Act” AKA the “CARES Act”.
Included in this act, among many other things, is an emergency grant to help small businesses weather the storm. As many have already reported here on YouTube and on national media, the verbiage in the act strongly suggests each small business that meets the criteria will receive a grant of $10,000.
SEC. 1110. Emergency EIDL grants: subsection (e) (1) [a small business] ‘may request that the Administrator provide an advance that is, subject to paragraph (3), in the amount requested by such applicant to such applicant within 3 days after the Administrator receives an application from such applicant. ‘
It first starts by saying “may request” and this is actually the biggest key in this section. A business “may request … an advance”
This does not say the SBA will award the advance, only that you as the business owner may ask for it.
Moving on to the next block that confuses people in this sentence “subject to paragraph (3),
in the amount requested by such applicant”
What the heck does this mean? Well, first, we need to read paragraph 3. It says:
‘(3) AMOUNT.—The amount of an advance provided under this subsection shall be not more than $10,000.’
So, ok, we know that the amount cannot be MORE than $10,000.
This means the business owner can request any amount he or she feels in necessary, as long as the amount does not exceed $10,000.
Now, let’s finish the last part of the sentence that is confusing a lot of people “within 3 days after the Administrator receives an application”
Many have misinterpreted this to mean you will receive your money within 3-days. However, if you break down the sentence it only says: the business owner may request an advance within three days of an application being received.
I fully agree this is a poorly written sentence that is easily misinterpreted, but in my humble opinion and once again I’m just a dude on the internet, and we are just friends shooting the shit; this sentence really means the following:
Within 3-days of the SBA Administrator receiving your application, you may ask the SBA to kindly advance up-to $10,000 of your loan.
It does not say anywhere that the SBA WILL give you the advance, nor does it say it will give you the full amount, nor does it mention a timeline for actually receiving the money.
In summary, they say, the grant will be awarded thusly:
$1,000 per employee, up to $10,000.
SBA currently says that money is expected to start being distributed this week.
The CARES act says “An applicant shall not be required to repay any amounts of an advance provided under this subsection, even if subsequently denied a loan under section 7(b)(2) of the Small Business Act “
So, this would strongly suggest, that you are free to keep any money advanced to you as a grant and you are not obligated to pay it back. However, if you do take the EIDL loan, it appears the remainder of the loan must be paid back in full.
While not providing you advice, once-again, just chatting with friends here. But you might be best served to take the grant and to refuse the loan.
DO NOT confuse this with the ‘Paycheck Protection Program (PPP) Loan’. The previous information is only for the EIDL loan program. Yes, I know, confusing, but come on, when has the government ever done something that wasn’t at least a little bit confusing.
Let me know if you want me to make a video covering the PPP program as well.
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In closing a quick statement: I am not a lawyer, CPA, tax advisor, realtor, financial advisor, etc., etc., I have absolutely no licenses/certifications in anything related to these industries, I am just a dude on the internet. So, in full disclosure: the information I provide here is for “entertainment purposes only” and you should seek counsel from competent and certified individuals if you have questions.